Swell has chosen Polygon’s AggLayer, an advanced zero-knowledge aggregation technology, to develop its restaking protocol. This decision coincides with Ethereum‘s latest Denizen update, which emphasizes the importance of staking and restaking processes within the Layer-2 ecosystem. The update is expected to substantially decrease transaction fees, encouraging the uptake of Layer-2 chains. Polygon’s native token, MATIC, experienced a notable daily surge of 7% following the announcement.
Integration of Cutting-Edge Technology
Polygon is set to apply its AggLayer to Swell’s project, incorporating this layer-2 scaling solution into the decentralized finance (DeFi) network. This move aims to enhance scalability and provide seamless access to liquidity across multiple blockchains. Ethereum’s enhancements through the Denizen upgrade are anticipated to further advance the Layer-2 token narrative and potentially lead to broader adoption of Polygon’s offerings among Web3 developers.
Market Impact and Growth Strategies
MATIC’s price has climbed to $1.2774, reflecting the market’s positive reception of Polygon’s technological advancements and the potential benefits of Ethereum’s Denizen upgrade. In a strategic move to foster ecosystem growth, Polygon distributed 217 million MATIC tokens, worth $198 million, to 70 wallets in November, sparking discussions over possible sell-offs as a considerable amount was moved to centralized exchanges.
Furthermore, the number of active addresses transacting on the Polygon network has spiked by 88%, from 1,719 to 3,232, indicating a rising trust in the cryptocurrency. This uptick in user engagement and the consequent price appreciation of MATIC underscores the growing confidence in Polygon’s platform and its token within the cryptocurrency community.